Back to top

Image: Bigstock

INGR or KRYAY: Which Is the Better Value Stock Right Now?

Read MoreHide Full Article

Investors looking for stocks in the Food - Miscellaneous sector might want to consider either Ingredion (INGR - Free Report) or Kerry Group PLC (KRYAY - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Ingredion and Kerry Group PLC are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that INGR has an improving earnings outlook. However, value investors will care about much more than just this.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

INGR currently has a forward P/E ratio of 11.28, while KRYAY has a forward P/E of 17.10. We also note that INGR has a PEG ratio of 1.03. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. KRYAY currently has a PEG ratio of 2.93.

Another notable valuation metric for INGR is its P/B ratio of 1.95. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, KRYAY has a P/B of 2.19.

These are just a few of the metrics contributing to INGR's Value grade of A and KRYAY's Value grade of C.

INGR sticks out from KRYAY in both our Zacks Rank and Style Scores models, so value investors will likely feel that INGR is the better option right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Ingredion Incorporated (INGR) - free report >>

Kerry Group PLC (KRYAY) - free report >>

Published in